Toll Brothers Inc. recorded a loss for its fiscal first-quarter but saw an increase in the number of people who signed contracts to buy one of its houses.

The Horsham, Pa., company had a first-quarter net loss of $2.8 million, or 2 cents per diluted share, compared with income of $3.4 million, or 2 cents per diluted during the same period a year ago.

Before taxes, Toll Brothers (NYSE:TOL) narrowed its losses, which were $6.4 million compared to $17 million for the same period a year ago. Its fiscal first quarter ended Jan. 31.

The number of signed contracts came in at 652 units, and rose by 45 percent to $444.7 million. The number of signed contracts of 2.86 units per community was the highest for any first quarter in five years, though it was well below Toll’s historical first-quarter average of 4.82 units, dating back to 1987.

Toll was stung by a higher cancellation rate of 6.2 percent in the quarter of compared to 5.7 percent in the same period a year ago. The company said that was consistent with “pre-downturn historical averages.”

Toll shares were trading 4.2 percent lower Wednesday at $22.70.

Natalie Kostelni covers real estate and economic development.

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